For a renter, the income effect of an increase in apartment rents will
a. have a greater effect than the income effect of an increase in the price of chewing gum
b. have no impact on the demand curve for apartments, because everything except price is assumed constant
c. have less of an effect than the income effect of an increase in the price of chewing gum
d. be almost negligible, because housing is a necessity
e. occur only when income increases
A
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Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays. B) difference between the supply curve and the price a consumer pays. C) difference between total cost and total revenue. D) product of price of a good and quantity sold.
The sum of currency and reserves of depository institutions is the ________
A) reserves of the Fed B) assets of the Fed C) monetary base D) vault cash